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we have a 7/1yr arm mortgage--7 yrs will be in 2015--what happens then?

By livewell54927 from CA Oct 17th 2014
Reply

Your rate will become an adjustable. If you have had this particular loan for 7 years I would strongly recommend that you look into refinancing. The rates are so much better!!!

Oct 17th 2014

Fax me your adjustable rate note document and I will tell you exactly what will happen and give you all your options. 888-456-6821

Oct 17th 2014

Hello. Your can move up or down once it's fixed period is up. Your rate came go as high as 5% more. You should ask your current lender for a copy of your note so you know what index your rate is tied too and also the high the rate came adjust. It's best to refinance now since rates are historical lowsGive me a ring 209 612-6285 or email me at isanchez@baycalcapital.com and we can go over your options in more detail. Isaac Sanchez

Oct 17th 2014

Oops sorry for the type Os

Oct 17th 2014

The loan will become an adjustable rate mortgage which will have rate caps of 5/2/5. The loan rate will be tied to the 1 year Libor index currently .55% and your loan will have a margin that will be applied typically 2.25% this is added to the current libor index at the time of loan change your rate could be 3%. However if rates go way up at the time of your 1st change it is capped at 5%. The 1st year only has a cap of 5% subsequent years are 2% capped so if rates go way up for example (worst case 5.55% + 2.25% = 7.80%) the years after have a 2% cap from where the index and margin are. The life cap is also 5% so the worst in our example is 7.80% for the life of the loan. What is your rate now? at the change it will likely be lower than your current rate a strategy may be to let it adjust see where your rate is and if lower than current continue to pay the mortgage as you have been and apply the extra as a principal payment this will begin to reduce principal and each change the payment will be determined by your principal balance and the the rate for the year. If this may be too much to monitor you can refinance to a 30, 20, 15 year fixed mortgage call me on either option 800-485-1387 Ext. 116 or ballen@bankofengland1.com.

Oct 18th 2014

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